[Federal Register: March 20, 1998 (Volume 63, Number 54)]
[Notices]               
[Page 13727-13729]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20mr98-187]


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Part II





Department of the Treasury





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Notice of Funds Availability (NOFA) Inviting Applications for the 
Community Development Financial Institutions Program--Core and 
Technical Assistance Components; Notices


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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund
[No. 981-0154]

 
Notice of Funds Availability (NOFA) Inviting Applications for the 
Community Development Financial Institutions Program--Core Component

AGENCY: Community Development Financial Institutions Fund, Department 
of the Treasury.

ACTION: Notice of Funds Availability (NOFA) inviting applications.

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SUMMARY: The Community Development Banking and Financial Institutions 
Act of 1994 (12 U.S.C. 4701 et seq.) (hereafter referred to as the 
``Act'') authorizes the Community Development Financial Institutions 
Fund (hereafter referred to as ``the Fund'') of the U.S. Department of 
the Treasury to select and provide financial and technical assistance 
to eligible applicants under the Community Development Financial 
Institutions (``CDFI'') Program. The interim rule (12 CFR part 1805), 
which was published in the Federal Register on April 4, 1997 (62 FR 
16444), provides guidance on the contents of the necessary application 
materials and program requirements. Subject to funding availability, 
the Fund intends to award up to $40 million in appropriated funds 
pursuant to this NOFA and expects to issue approximately 50 to 60 
awards. The Fund reserves the right to award in excess of $40 million 
in appropriated funds pursuant to this NOFA provided that the funds are 
available and the Fund deems it appropriate. The Fund reserves the 
right to fund, in whole or in part, any, all, or none of the 
applications submitted in response to this notice.
    This NOFA is in connection with the core component of the CDFI 
Program. The core component provides direct assistance to CDFIs that 
serve their target markets through loans, investments and other 
activities. (These primary activities do not include the financing of 
other CDFIs. In the previous round of the CDFI Program a separate NOFA 
was published in the Federal Register (62 FR 16461) in connection with 
the intermediary component of the CDFI Program. The intermediary 
component provides financial assistance to CDFIs that provide financing 
primarily to other CDFIs and/or to support the formation of CDFIs. At 
this time the Fund is only making funds available for the core 
component; however, the Fund may issue a NOFA for the intermediary 
component at a later date.)

DATES: Applications may be submitted at any time following March 20, 
1998. The deadline for receipt of an application is 6 p.m. EDT on June 
12, 1998. Applications received after that date and time will not be 
accepted and will be returned to the sender. Applications sent 
electronically or by facsimile will not be accepted.

ADDRESSES: Applications shall be sent to: Awards Manager, the Community 
Development Financial Institutions Fund, U.S. Department of the 
Treasury, 601 13th Street, NW., Suite 200 South, Washington, D.C. 
20005.

FOR FURTHER INFORMATION CONTACT: If you have any questions about the 
programmatic requirements for this program contact the CDFI Program 
Manager. Should you wish to request an application package or have 
questions regarding application procedures contact the CDFI Awards 
Manager. They may be reached by phone on (202) 622-8662, by facsimile 
on (202) 622-7754 or by mail at CDFI, 601 13th Street, NW., Suite 200 
South, Washington, D.C. 20005. Allow at least one to two weeks for the 
receipt of the application package.

SUPPLEMENTARY INFORMATION:

I. Background

    Credit and investment capital are essential ingredients in creating 
and retaining jobs, developing affordable housing, starting or 
expanding businesses, revitalizing neighborhoods, and empowering 
people. As a key urban and rural policy initiative, the CDFI Program is 
fostering the creation of a national network of financial institutions 
that are specifically dedicated to funding and to supporting community 
development. This strategy will build strong institutions that make 
loans and investments and provide services to economically distressed 
investment areas and disadvantaged targeted populations. The Act, which 
implements this vision authorizes the Fund to select entities to 
receive financial and technical assistance. Institutions in operation 
at the time of application are eligible to receive assistance to expand 
their activities. New institutions are eligible to receive start-up 
assistance. This NOFA invites applications from eligible organizations 
for financial assistance, technical assistance, or both, for the 
purpose of promoting community development activities and 
revitalization.
    The Program connected with this NOFA constitutes the core component 
of the CDFI Program, involving direct financial and technical 
assistance to CDFIs that serve their target markets through loans, 
investments and other activities. This NOFA will not support CDFIs that 
primarily are funding other CDFIs. Under this core component NOFA, the 
Fund has an anticipated maximum award of $2 million per applicant. 
However, the Fund, in its sole discretion, reserves the right to award 
amounts in excess of the anticipated maximum award amount if the Fund 
deems it appropriate.
    Elsewhere in this issue of the Federal Register, the Fund is 
publishing a separate NOFA for the first round of the technical 
assistance (TA) component of the CDFI Program. The TA component NOFA is 
specially tailored to award TA grants to eligible applicants 
demonstrating unmet capacity needs, that if addressed would potentially 
generate significant community development impact. Under the TA 
component NOFA, applicants may only apply for TA, and the anticipated 
maximum TA award per applicant is $50,000. All applications for TA 
under the TA component NOFA will be evaluated separate and apart from 
the applications for TA, financial assistance or both under this core 
component NOFA, because the application requirements and the selection 
criteria in the TA component NOFA differ from those contained herein. 
However, eligible applicants may apply for TA under both the TA 
component NOFA and this core component NOFA. It is unlikely that an 
organization will receive support under both NOFAs.

II. Eligibility

    The Act and the interim rule specify the eligibility requirements 
that each applicant must meet in order to be eligible to apply for 
financial assistance, TA, or both under this core component NOFA. 
Specifically, an entity must meet, or propose to meet, the CDFI 
certification requirements. In general, a CDFI must have a primary 
mission of promoting community development, provide lending or 
investments, serve an investment area or a targeted population, provide 
development services, maintain community accountability, and be a non-
government entity. At the time an entity submits its application, the 
entity must be duly organized and validly existing under the laws of 
the jurisdiction in which it is incorporated or otherwise established, 
and is (or within 30 days of the Fund's receipt of their application 
will be) authorized to do business in any jurisdiction in which it 
proposes to undertake the activities specified in its application. The 
details regarding these

[[Page 13729]]

requirements and other program requirements are described in the 
application packet and the interim rule.

III. Types of Assistance

    An applicant may submit an application for financial assistance, 
TA, or both under this core component NOFA. Financial assistance may be 
provided through an equity investment, a grant, a loan, deposits, 
credit union shares, or any combination thereof. Applicants for 
financial assistance shall indicate the dollar amount, form, terms, and 
conditions of assistance requested. Applicants for TA under this NOFA 
shall describe the types of TA requested, the provider(s) of the TA, 
the cost of the TA, and a narrative justification of its needs for the 
TA.

IV. Application Packet

    Except as described hereafter, an applicant under this NOFA, 
whether applying for financial assistance, TA, or both, shall submit 
the materials described in Sec. 1805.701 and the application packet.
    If an applicant is currently certified as a CDFI by the Fund, it 
may submit a copy of the Fund's letter of certification and the 
Certification of Material Changes form, a copy of which is contained in 
the application packet, in lieu of the information described in 
Secs. 1805.701(b)(1)-(8). However, an applicant should include 
information in its application that it believes is relevant to the 
Fund's substantive review of the application under Sec. 1805.802(b).

V. Matching Funds

    Applicants responding to this NOFA must provide matching funds from 
sources other than the Federal Government on the basis of not less than 
one dollar for each dollar provided by the Fund. Such matching funds 
shall be at least comparable in form and value to assistance provided 
by the Fund. Non-Federal funds obtained or legally committed on or 
after January 1, 1997, may be considered when determining matching 
funds availability. Applicants selected to receive assistance under 
this NOFA must have firm commitments for the matching funds required 
pursuant to Sec. 1805.600 by no later than August 31, 1998. The Fund 
may recapture and reprogram funds if an applicant fails to raise the 
required match by such date. The Fund reserves the right to grant an 
extension of such matching funds deadline for specific applicants 
selected for assistance if the Fund deems it appropriate. Funds used by 
an applicant as matching funds for a previous award under the CDFI 
Program cannot be used to satisfy the Sec. 1805.600 matching funds 
requirement.

VI. Evaluation Factors

    Applications will be evaluated on a competitive basis in accordance 
with criteria described in Sec. 1805.802. Special emphasis is expected 
to be placed on:
    (1) The applicant's track record, financial strength, and current 
operations;
    (2) The capacity, skills, and experience of the management team;
    (3) The quality of the applicant's comprehensive business plan;
    (4) The extent and nature of the potential community development 
impact that would be catalyzed by the Fund's assistance, relative to 
the amount of such assistance to be provided; and
    (5) The likelihood that the applicant will be able to raise the 
required matching funds.
    The applicant's track record, financial strength and current 
operations are important to the extent they may be suggestive about the 
prospects for success in the future. In the case of a young or start-up 
institution with no, or a limited, track record, extra emphasis will be 
placed on the capacity, skills, and experience of the applicant's 
management team and the quality of its comprehensive business plan.
    While previous awardees are eligible to apply pursuant to this 
NOFA, such applicants should be aware that success in a previous round 
should not be considered indicative of the likelihood of success under 
this NOFA. At the same time, organizations will not be penalized for 
having received awards in previous rounds.
    The anticipated maximum award per applicant under this NOFA is $2 
million. However, the Fund, in its sole discretion, reserves the right 
to make individual award amounts in excess of $2 million if it deems it 
appropriate. The Fund reserves that right to award, in whole or in 
part, any, all, or none of the applications submitted in response to 
this notice.

VII. Workshops

    The Fund expects to host workshops to disseminate information to 
organizations interested in applying for assistance pursuant to this 
NOFA. If you wish to be on a mailing list to receive information about 
such workshops, please fax your request to the Fund.

    Authority: 12 U.S.C. 4703, 4703 note, 4704, 4706, 4707, and 
4717; 12 CFR part 1805.

    Dated: March 16, 1998.
Ellen Lazar,
Director, Community Development Financial Institutions Fund.
[FR Doc. 98-7152 Filed 3-19-98; 8:45 am]
BILLING CODE 4810-70-P